Contract Validity (Consideration) Coursework Assignment (Coursework Sample)

CONTRACT VALIDITY
STUDENT’S NAME
TUTOR’S NAME
COURSE TITLE
INSTITUTION’S NAME
DATE
A contract is an agreements between two parties, that creates an enforceable commitment to do, or to refrain from doing, a certain thing.. A contract is legally enforceable when it meets the following seven key characteristics:
1 Offer and acceptance: any contract has to have a party that makes an offer and another accepting the terms. Normally, it is made in writing or orally, but in case the contract gives room for acceptance and contractual duties, then acceptance by conduct is incorporated.
2 Intention to enter legal contract: A contract is validated not only because one enters into an agreement, but a legally binding agreement.
3 Legal capacity: The parties involved must be mature and sane. Any contracts by persons without legal capacity is deemed voidable: that is, any party in need of protection should avoid contractual liabilities.
4 Consent: Each party must fully understand what they are going to do when they enter the contract. Consent is deemed free when not caused by:
* Fraud
* Coercion
* Undue influence
* Misrepresentation
* By a mistake
5 Lawful object: This is the purpose or design of the contract and must be valid. An unlawful object is one that:
* Is lawfully forbidden
* Is of a nature that though permitted by law, defeats provisions of the law
* Is fraudulent
* The court considers to be immoral
* Involves property destruction or injuries to either parties
6 Not void or illegal: Despite meeting all the other requirements it should not have been expressly declared void by any country law.
7 Consideration: This is the price promised at the end of the contract. It is the detriment to the other party who made a promise and should be economically measurable. A consideration does not have to be adequate; this implies that if a service provider or seller is to sell a service or a product at a price lower than the market price, the service provider or the seller cannot go to the court in claim of the shortfall.
The scenario we are subjected with is a legal contract. Based on the consideration element, Julie offers Rita $10 for a bracelet and Rita accepts the deal by offering Julie $10 in exchange of the bracelet. The consideration here ($10 in our case) is economically measurable validating this element. Rita does not breach any contract by realizing that the bracelet cost...